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Electricity Tariffs Explained: Flat, Time-of-Use, Demand & Feed-in
Your tariff determines whether solar and batteries pay off. Understand the four main tariff structures and what they mean for you.
WaterFuelAndSolarEnergy.com Editorial Team Updated December 2024 9 min read
The same panels and battery can vary hugely in value depending on your electricity tariff, because the tariff sets what you avoid paying and what you earn for exports.
Main tariff structures compared
| Tariff | How it works | Good for solar? |
|---|---|---|
| Flat / single rate | One price all day | Yes, simple |
| Time-of-use (TOU) | Cheap off-peak, pricey peak | Yes, with battery |
| Demand / capacity | Charge on peak demand | Less ideal |
| Feed-in (exports) | Payment for exported solar | Lowers export value |
Reading your bill
Find your per-kWh rate in each period and your supply/connection charge. Your feed-in tariff (what you get for exports) and any demand charge are the two easy-to-miss numbers.